1 iran at a glance 2008 exit. 2 islamic republic of iran economy & trade 2008 key indicators...

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Iran at a Glance

2008

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ISLAMIC REPUBLIC OF IRAN

ECONOMY & TRADE 2008

Key Indicators

Population (Millions) 71.5

* GDP (PPP) ($US Billion) 817

* Import (FOB) ($US Billion) 53

Area (Million km2) 1.65

* Export ($US Billion) 100 * Crude Oil & Gas (82) 82 %

Source:

Central Bank of Iran, Iran Customs Dept.,IMF

* Estimate

*GDP Current $ ($US Billion) 382

Persian Gulf

* Trade Balance ($US Billion) + 47

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* Non-Oil Export (18) 18%Excluding liquefied Gases

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Iran with a GDP worth $ 817 billion (based on Iranian Rial purchase

power against us dollar) and

over a $ 153 billion in Foreign Trade volume in year 2008 is one

of the economic powers and large markets in the Middle-East

region.

Iran has extra ordinary expansion and investment potentials in

the fields of Oil, Gas, Petrochemicals, Mines, Industries,

Agriculture and Service sectors.



Key Indicators

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Iran ranks 4th on Diversity of Agricultural Products in the world.

Iran holds 4th to 9th rank in the production of Zinc, Lead, Cobalt, Aluminum, Manganese, Copper in the world.

303 Techno-Engineering projects have been executed in 42 countries by Iranian companies over the last 10 years.



Key Indicators

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Industrial commodities make up about 57% of Non-oil export.

Import structure consists of 16.2% capital, 65.2% intermediated, 9.9% consumer goods.

Iran holds the 7th standing in tourist attractions however, has little share in the trade of world tourism



Key Indicators

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Trade Strategies

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Renovation of NationalCommercial Systems

Competition & Anti-trustPolicies

Proactive Interaction with the Global Economy

Increasing the Country’s Stake in the International Trade


TRADE STRATEGIES Goals & Objectives

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Goals&

Objectives

2 .Development of ForeignTrade & Non - Oil Export

Promotion

1. Trade Facilitation

8. Restructuring & ImprovingHuman Resources

4. E-Commerce Development

7. Targeted Subsidies

5. Distribution Channels Productivity Upgrading

6. Local MarketRegulating

3. Active ParticipationIn Regional Blocks

2

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Rationalizing Tariff System & Anti-Dumping Measures

Non-Official Trade Reduction

Implementing Preferential Tariff Agreements

Trade Balance Improvement

Developing Trade & Economic Cooperation

1. Trade Facilitation

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Sectoral Export Strategy Formulation

Promoting Export of Goods & Services

Expansion & Diversification of Export Markets

Infrastructure Development & Upgrading Service Delivery

2. Development of Foreign TradeNon-Oil Export Promotion

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3. Active Participation in Regional Blocks

Managing Iran Accession to WTO & Minimizing it’s probable

adverse effects

Preparation of Economic Social & Cultural Sectors of Iran for

Accession to WTO

Iran Active Participation International & Regional Blocks and

Organizations

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Establishing Required Infrastructure for E-Commerce Promotion

Development of New Technologies in Trade Sector

Designing and Integrating Trade Information Systems

4. E-Commerce Development

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Improvement & Development of Trade Logistics

Re-engineering of Distribution Sub-Sector of the country

Clusters & Production Networks Promotion in the country

Private Sector Investment Attraction & Promotion in Trade

Sector



5. Distribution Channels Productivity Up-grading

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Strategic Goods Local Market Regulating

Consumer Rights Protection & Market Surveillance

6. Local Market Regulating

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Strategic Goods Subsidy System Improvement

Monitoring Strategic Goods Distribution

7. Targeted Subsidies

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Management Development

Re-Structuring & Re-Engineering in Trade Sector

Promotion of establishing NGO’s for down-sizing of Government

Process Improvement, Procedures and technology Development

Customer Orientation

8. Restructuring & Improving Human Resources

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Potential Export

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POTENTIAL EXPORT

Potential Export Products & Services

m Agriculture Sector: - Agricultural & Horticultural Products - Poultry, Husbandry & Fisheries Products

m Industry Sector: - Food and Beverage - Textile & Leather - Construction Materials - Chemical Products - Fur Products - Plastic , Melamine Ware - Iron, Steel & Metal Ores - Refined Petrochemical Products - Pharmaceutical, Hygienic, Cosmetic Products - Transportation Equipment, Vehicles & Parts EXIT

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POTENTIAL EXPORT

Potential Export Products & Services

m Mines Sector: - Metal Mines - Non-Metal Minesm Services Sector: - Tourism - Technical & Engineering - Financial & Banking - Information Technology - Health Care Services - Labor Force - Transportation & Transitm Handicrafts Sector: - Hand Knotted Carpets - Handicrafts (other)

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Potential ExportComparative Advantage of Agriculture

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According to FAO, the principal structure of the world agriculture products is composed of 66 different products and Iran is among the top 10 countries producing 15 types of these products in the world

Iran ranks 4th on Diversity of Agricultural products in the world

Cultivated Lands (about 14 millions of hectares)

4 Season Products


AGRICULTURE

Comparative Advantage of Agriculture

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Continental Climate:

- Different types of climates

- Significant differences in temperature between:

Different Regions of the country

Different Seasons

Day & Night (sharp difference)

- 12000 Different Species of Plants - Average number of Sunny Days (300 Days)


AGRICULTURE

Comparative Advantage of Agriculture

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AGRICULTUREProduction Rank in the World

Husbandry

Country Rank

China 1

Australia 2

India 3

Iran 4

Country Rank

China 1

India 2

Pakistan 3

Sudan 4

Bangladesh 5

Nigeria 6

Iran 7

Sheep

Goat

Source: FAOEXIT

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Crops Primary

Source: FAOItem Rank Share

SAFFRON 1 90.00

STONE-FRUIT(FRESH) 1 43.28

PISTACHIO 1 38.83

BERRIES 1 26.81

CHERRIES 2 12.25

APRICOTS 2 10.10

DATES 3 12.71

WALNUTS 3 9.82

FIGS 3 8.37

CUCUMBERS & GHERKINS 3 3.34

WATER-MELONS 3 2.22

LEMONS & LIMES 4 8.64

APPLES 4 4.03

CHICK- PEAS 4 3.56EXIT

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Crops Primary

Source: FAOItem Rank Share

ALMONDS 5 4.85

TANGERINE MAND.CLEMENT 5 3.08

TREENUTS 6 5.00

GRAPES 7 4.26

ONIONS , DRY 7 2.52

HAZELNUTS 7 1.84

TOMATOES 8 3.42

ORANGES 8 3.18

PUMPKINS,SQUASH 8 2.54

PEACHES & NECTARINES 8 2.47

KIWI FRUITS 8 1.78

VEGETABLES & MELONS 9 15.2

SOUR CHERRIES 9 4.31

LENTILS 9 3.07EXIT

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Potential Export Comparative Advantage of Mine & Industry

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MINE & INDUSTRYProduction Rank in the World

Mineral Reserves

Item Rank

PERLIT 2 NATURAL GAS 2 OIL (CRUDE PETROLEUM) 2 ZINC 4 LEAD 4 COBALT 4 ILEMNIT 6 MANGANES ORE 8 BARITE 8 COPPER 9 CHROMIC 10 BAUXITE 11 POTAS 15 EXIT

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MINE & INDUSTRY

Potential Export

Mine & Industry Sector:

- Food and Beverage - Textile & Leather - Construction Materials - Chemical Products - Fur Products - Plastic , Melamine Ware - Iron, Steel & Metal Ores - Refined Petrochemical Products - Pharmaceutical, Hygienic, Cosmetic Products - Transportation Equipment, Vehicles & Parts - Metal Mines - Non-Metal Mines

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MINE & INDUSTRY1991-2007

Petrochemical Industry

Source: National Petrochemical Company EXIT

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31





32





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Potential ExportTechnical & Engineering Services

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TECHNICAL & ENGINEERINGSERVICES

Consulting & Contracting Firms

Dams, Tunnels, Bridges, Irrigation, Drainage & Waste Water Treatment

Power Lines & Power Plants

Electronics Industry & Information Technology

Telecommunications Equipment

Industrial Factories and Installations

Machinery Design & Refinery Equipment

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Export Projects 2008

PROJECTS 2008 $US MILLION

Road, Buildings & Construction 1518

Irrigation & Drainage Networks 582

Power Generation & Transmission 221

Oil, Gas & Petrochemicals 141

Industrial & Equipment 83

Consultation & Supervision 11

TOTAL 2927

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Middle East Middle Asia America Africa

Export Market



Export Markets 2008

2007-2008 SHARE

Middle East % 48

Middle Asia % 27

America % 13

Africa % 12

TOTAL % 100

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Export Markets 1994-2008

Zimbabwe

Sudan

Libya

Morocco

Niger

BangladeshIndia

Pakistan

Afghanistan

TajikistanTurkmenistan

Uzbekistan KyrgyzstanArmenia

TurkeySyria

Kazakhstan

Lebanon

Yemen

OmanQatar

UAE

Kuwait

Cyprus

Albania

1994-2008

Senegal

Iraq

Azerbaijan

Saudi Arabia

BeninDjibouti

Belarus

Venezuela

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Top Brands

2008

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Top Brands

2008

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Foreign TradeExport & Import

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0

10

20

30

40

50

60

70


FOREIGN TRADE 1981-2008

Trends of Export & Import

Value: $US Billion

Iran’s Export Iran’s Import

Source: Central Bank of I.R. Iran* Estimate

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13%

10%

8%7%

4%

1%

PGCC ECO EU CIS ASEAN AFRICAN

29% 26%

5% 5%3% 1%

EU PGCC ECO CIS ASEAN AFRICAN


FOREIGN TRADE2008

Trade by Regional & Economic Blocks

Iran’s Non-Oil Export

Iran’s Import

Source: I.R. Iran Customs Administration* Estimate

Value: % Share

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4312984

5091

4631

3280

2965

1936

1827

1372

1849

1886

UAE

GERMANY

CHINA

SWITZERLAND

SOUTH KOREA

UNITED KINGDOM

FRANCE

INDIA

ITALY

TURKEY


FOREIGN TRADE2008

Main Trading Partners (Top 10)

Non-Oil Export

Value: $US Million

Imports

639

569

522

454

438

914

1170

1998

2185

2315UAE

IRAQ

CHINA

INDIA

SOUTH KOREA

JAPAN

TURKEY

AFGANISTAN

SAUDI ARABIA

TAIWAN

Source: I.R. Iran Customs Administration* Estimate

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4 45 6

7

10

16

21

23


FOREIGN TRADE2000-2008

Non-Oil Export Trends

Iran’s Non-Oil Export

Value: $US Billion

Source: I.R. Iran Customs Administration* Estimate EXIT

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FOREIGN TRADE2008

Non-Oil Export

($US Billion) Share

* EXPORT OF GOODS * 23 %100

Industry Sector (Including Petrochemicals) 13 %57

Liquefied Gases 5.2 %23

Agriculture Sector 2 %9

Others 1.2 %5

Mine Sector 1 %3

Carpets & Handicrafts 0.6 %3

• Source: I.R. Iran Customs Administration• * Estimate EXIT

* EXPORT OF SERVICES

Technical & Engineering 2,7

Projects Value ($US Billion)

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13 14

1822

27

3539

41

4853


FOREIGN TRADE2008

Import Trends

Value: $US Billion

Iran’s Import


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FOREIGN TRADE2008

Import by Main Products

IMPORT OF GOODS $US Million Share

Gasoline 2992 %5.65

Ingots of Iron and Non-alloy Steel 2636 %4.97

Wheat And Meslin 1757 % 3.31

Petroleum Oils (Others) 1267 % 2.39

Maize(Corn) 988 % 1.86

C.K.D Parts For Manufacturing Motor Vehicles 616 % 1.16

Flat-Rolled Products Of Iron Or Non-Alloy steel 611 % 1.15

Bars And Rods Of Iron or Non Alloy Steel Containing Indentation

593 % 1.12

Apparatus Based on the Use of X-Rays 584 % 1. 10

Semi or Wholly Milled Rice 574 % 1.08


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FOREIGN TRADE2008

Import Structure

IMPORTS SHARE

Capital % 16

Intermediate % 65

Consumer % 10

Other % 938

Source: I.R. Iran’s Custom* Estimate

9%

65%

10%

16%

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Free ZonesTrade & Industrial

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Unique Geographical Locations

Sufficiently Developed Infrastructure Foreign Investment Incentives


TRADE & INDUSTRIALZONES

Advantages

6 Free Trade-Industrial Zones 19 Special Economic Zones

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http://www.iranecommerce.net/Articles/Images/Freezone3.jpg

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TRADE & INDUSTRIAL ZONES

Zones Distribution

Free Trade-Industrial Zone Special Economic Zone

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http://www.iranecommerce.net/Articles/Images/Freezone3.jpg

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Unique Climatic Conditions in the Persian Gulf

Great Tourist Attractions (1,000,000 Incoming Passengers Annually)

Good Potential for Electronic City and as a Home Base for Information Technology

Strategic Location & Physical Distance from the United Arab Emirates


TRADE & INDUSTRIALFREE ZONES

Kish

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Rich Mineral Reserves

Deep Coasts

Position of the Island in the routes of shipping lines convenient for Ships Maintenance, Fuel Installations and Logistics

Great Tourist Attractions and Potentials for Bio-Technology Development



Qeshm

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Moderate Climatic Conditions

Best Point for Transit of South East Asia to CIS, Afghanistan, Turkey and Iraq

Good Access to Land Roads

Good Infrastructure



Chabahar

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Investment Climate

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Contribution to Economic Development

Financing Projects

Upgrading Technological & Managerial Skills

Enhancing Quality Output

Increasing Employment

Export Promotion

Sharing Benefits & Risks on equal terms without discrimination


FOREIGN INVESTMENT

The Policy

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Political & Economic Stability (Desired G.D.P Growth) Strategic Location

Easy access to 15 Neighboring Markets with the Population of 300 million and Imports of $US 200 Billion

Market Potentials and Proximity Labor Privileges Developed Infrastructure Low Utility and Production Cost Abundant Natural Resources New Investment Legislation Climatic Characteristics Fiscal Incentives Political Stability


FOREIGN INVESTMENT

Main Advantages

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FOREIGN INVESTMENT

Distribution of Foreign Investment by Main Provinces (1993-2008)

Source: Organization for investment, Economic and Technical Assistance of Iran (OIETAI)

PROVINCE VALUE (US $ Thousand)

Hormozgan 16,318Bushehr 6,173Tehran 2,414Khuzestan 1,205Isfahan 1,204Sistan & Baluchistan 1,017Fars 840Yazd 712Gilan 455Ghazvin 377Markazi 290Kerman 239Kordestan 225Khorasan Razavi 183

Total (Include Others) 34,062

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FOREIGN INVESTMENT1993 - 2008

Main Foreign Investors in Iran

Source: Organization for investment, Economic and Technical Assistance of Iran (OIETAI) EXIT

Europe: 32 %Africa: 23 %

Asia: 34 %

Others: 8 %

America: 3 %

60EXIT

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1 iran at a glance 2008 exit. 2 islamic republic of iran economy & trade 2008 key indicators...

Documents

trade strategies exit

trade facilitation exit

trade sector promotion

iran accession

iran customs

potential export exit

grading exit slide

trade economic cooperation